If are you running a trucking business, then you know what is IFTA fuel tax? Or else if you are wondering how it is applied to your vehicles? Being a trucker you should know about IFTA and details of it. The full form of IFTA is The International Fuel Tax Agreement. It is an agreement made between 48 lower states of the U.S and 10 Canadian Provinces. According to IFTA, every jurisdiction will get fuel tax revenue for the fleet travelled in it. It does not matter if you have purchased fuel in that state or not. Heavy Highway Use Tax is a federal tax. It has to be paid by anyone who wants to register a vehicle classified as a heavy highway motor vehicle on their name.
The Heavy Highway Use tax is collected on the vehicles having a gross weight of 55,000 or more. The vehicles that operate on public highways and have travelled a distance of 5,000 miles in a year. The taxes are collected once a year. It is used for the construction and maintenance of the highways. Form 2290 is used to pay the heavy highway use tax. The right set of tools and software is always helpful to run the trucking business. IFTA tax reporting is always been a complex and tiring process.
IFTA tax reporting software is designed to make IFTA reporting easy and fast. But choosing the right software in this crowded market is a big challenge. Some of the ways to select IFTA fuel reporting software. The first and foremost thing the truckers look in any software is its user-friendliness. The drivers and many other staffs are not tech-savvy. So, the interface of the IFTA reporting software should be easily navigated. No special seminar or training is required to operate the software. You need a tool that will automatically calculate your IFTA taxes. So, that it will help you inaccurate IFTA reporting.
The IFTA fuel reporting software can track mileage, routes, loads, and invoices. Hence, your manual tracking and tracing operations are totally eliminated. The automated system generates fuel as well as fleet-related data very fast. Another feature you should look in the IFTA tax reporting software is its accuracy to generate reports. Generally, standard software is accurate and precise and provides error-free outcomes. It also reduces the chances of errors and increases your time on the road.
The IFTA reporting tool lets you track driver’s miles to get complete information about the fleet activity and current tax liability. A powerful IFTA fuel tax reporting software can track lots of information. The information includes miles travelled, fuel usage, fuel purchased, credits due along with laden and unladen weights along the way. The lengthy mathematical calculation makes the IFTA reporting more complex. Generally, the truckers find it hectic and difficult to do the calculations manually. In this situation, IFTA reporting software is an impeccable option to choose. The advanced calculation considers the laden/unladen weights and truck axle count. A good fuel tax reporting software helps to boost the performance of your trucking company. It will turn your biggest headache of IFTA reporting into a simple and straightforward process.